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3 points Sav Drake Company's income statement for the most recent year appears below. Sales (26,000 units) $676,000 Less: Variable expenses 442,000 Contribution margin 234,000

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3 points Sav Drake Company's income statement for the most recent year appears below. Sales (26,000 units) $676,000 Less: Variable expenses 442,000 Contribution margin 234,000 Less: Fixed expenses 270,000 Net operating loss $ (36,000 e.) Workers at Drake belong to a union which just agreed to a new contract that increases their wages and therefore the variable costs of Drake. Drake's Contribution Margin will therefore decrease unless it changes its pricing or production strategy. As a result of the new contract, the break-even point for Drake will (Please select one): Decrease Increase Be Unchanged Moving to the next question prevents changes to this answer Question of PERES

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